Smart Device System and Method of Use

6. The method of claim 1, wherein the smart device receives the first message including the data associated with the transaction from the access device and transmits the third message including the cryptogram to the access device via a wireless connection.

8. The method of claim 1, wherein data in at least one of the first message, the second message and the third message is exchanged in a plurality of messages.

9. The method of claim 1, wherein the smart device includes a secure element and a pocket configured to receive the portable device.

11. The method of claim 1, wherein information is exchanged between the access device and the portable device only through the smart device.

15. The method of claim 1, wherein the access device is a point of sale terminal of the resource provider.